‘GST has hit NMC’s revenue collection’

Source: The Hitavada      Date: 12 Jan 2018 09:40:29


Staff Reporter,

Standing Committee Chairman Sandeep Jadhav to conduct zone-wise meetings to take stock of property tax recovery

Goods and Services Tax (GST) has hit the revenue collection of cash-strapped Nagpur Municipal Corporation (NMC) really hard, and property tax collection also has taken a hit due to faulty survey conducted by CyberTech company, said Sandeep Jadhav, Chairman of Standing Committee.

Talking to reporters after Standing Committee meeting on Thursday evening, Jadhav said that GST had ‘caused problems’ in ensuring proper revenue collection. “It has affected our annual budget calculations,” he admitted. Since abolition of Local Body Tax (LBT), NMC was getting an aid from the State Government. Since enforcement of GST regime, State Government is providing compensation to NMC. Barring the first month, now NMC is getting around Rs 52 crore per month though its monthly committed expenditure is Rs 78.81 crore. As a result, NMC is finding it difficult to keep afloat with its finances.

“The faulty survey conducted by CyberTech company also has affected recovery of property tax. So far, property tax recovery is only Rs 122 crore, which should have been twice or thrice the said amount,” Jadhav said. Commenting on the aid provided by State Government, he said that it was lesser than NMC’s requirement. Chief Minister should give more aid to NMC to tide over crisis, he said. Soon, Chief Secretary of Maharashtra Government will review the situation as far as NMC is concerned, he added.

Sandeep Jadhav has written a letter to Ashwin Mudgal, Municipal Commissioner, in which he has sought annual budgetary review as part of the exercise to prepare for the budget for the next financial year. Municipal Commissioner has to submit his budget before February 20, he said.

Meanwhile, Jadhav has decided to conduct zone-wise meetings to take stock of tax recovery. These meetings will be conducted between January 22 and January 25. Every day, meetings of two zones will be held. He has asked all Standing Committee members and all Zone Chairpersons to attend the meetings of respective zones.